What is a 'Mutual Assurance Society' and how can you benefit from one?

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Understanding what a “mutual society” is, could mean the difference between reaping the benefits of belonging to one… or not!

 

SPONSORED - We’re all seeking financial wellbeing. We all want a better financial future for ourselves and our loved ones. In fact, in these tough financial times, any financial relief is welcome.

Financial literacy is important for anyone and everyone… now more than ever before. The good news is that simply understanding the basics can go a long way toward helping you achieve financial wellbeing. Basics like understanding what a “mutual society” is could mean the difference between reaping the benefits of belonging to one… or not! That’s why AVBOB proudly brings you Family first, finance matters – a series of simple financial tips to equip and empower you. 

So, what is a mutual assurance society?

 

 

 

A mutual assurance society is an organisation that doesn’t have any shareholders. The profits of the organisation are shared with its clients, often policyholders, by means of policy benefits or special bonuses. Essentially, as a policyholder, you reap the benefits of the company’s success.

One of the oldest and most well-known examples of a mutual assurance society is AVBOB.

The mutual model has been part of the Group’s DNA for more than 100 years. AVBOB shares its profits not only with clients but also with the communities it serves through CSI initiatives and upliftment projects.

A mutual assurance society can offer a variety of insurance or policy options and products.

AVBOB, for example, delivers a one-stop offering that includes funeral insurance and funeral services as well as investment and savings products.

There is a wide range of savings and investment products in the market and many of these products are tailored to meet the needs of different customers. It’s never one-size-fits-all, so look for the solution that works best for your unique needs.

When researching and choosing such products, ask questions. Is it a mutual? What exactly are the benefits? How do these benefits differ from those offered by other financial institutions?

Asking the right questions will help you find the right answers… and set you on the path to a better financial future.

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